(Ecofin Agency) – The opening of the capital of public banks on the Algiers Stock Exchange aims both to modernize the national banking sector and to give new impetus to the financial center, which has marginally contributed to the financing of the economy since its launch in 1997.
The Local Development Bank (BDL), an Algerian public bank, will begin opening its capital on the stock market from Monday January 20, 2025, with a view to raising 61.88 billion dinars (approximately $455 million) , announced the president of the Commission for the organization and supervision of stock exchange operations (Cosob), Youcef Bouzenada, on Tuesday December 31, 2024.
“The operation will run from January 20 to February 20, 2025, during which the bank will carry out a public sale offering (OPV) of 44.2 million shares, representing 30% of its capital,” he declared during a press conference indicating that the unit price was set at 1,400 dinars per share.
Mr. Bouzenada also specified that a proportion of 40% of the total shares concerned by the OPV will be intended for individuals compared to 30% for legal entities and 30% for professional investors.
For his part, the general director of BDL, Youssef Lalmas, noted that the bank’s IPO “is part of the modernization of the financial sector”et “offers domestic investors a unique opportunity to participate in this evolution.”
The stock market intermediaries responsible for selling the shares will be the six public banks (BNA, BEA, CNEP Banque, BDL, CPA, BADR) as well as Société Générale Algérie, Tell Market and Invest Market.
The Council of State Participations (CPE) had already given, on Wednesday, December 4, the green light to the partial opening of the capital of the BDL on the Algiers Stock Exchange up to 30%.
The BDL will be the second public bank to join the Algiers market, after the admission to listing of the securities of Crédit Populaire d’Algérie (CPA) in the first quarter of 2024. This largest initial public offering (IPO) in Algeria had then allowed the CPA to raise 112 billion dinars ($831 million), and the stock market created in 1997 to multiply its capitalization by seven, to 532 billion dinars against 72 billion dinars previously.
Founded in 1985, BDL is a commercial bank whose main mission is to “contribute to the economic and social development of local communities”. It has a network of 168 agencies. Its arrival on the Algiers Stock Exchange will bring the number of listed companies to seven.
Walid Kefi
Also read:
03/26/2024 – The capitalization of the Algiers Stock Exchange multiplied by seven after the introduction of a public bank
01/26/2024 – Bank: Crédit Populaire d’Algérie wants to mobilize $1 billion with its partial opening of capital
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